In February 2010, the European Economic and Social Committee (EESC) decided to draw up an own-initiative opinion on Employee Financial Participation (EFP). This own-initiative opinion, SOC 371, rapporteur Alexander Graf von Schwerin (employees group) and co-rapporteur Madi Sharma (employers group), was adopted in the EESC's Section for Employment, Social Affairs and Citizenship on 2 September 2010 and is to pass the plenary session on October 20-21.

Therefore, the EESC calls for a new Council Recommendation (like 92/443/EEC of 27.7.1992) concerning the promotion of employee financial participation and proposals to deal with obstacles to cross‑border plans.

Furthermore, SOC 371 calls on the European institutions and governments for a renewed initiative to support employee financial participation, and to promote the idea of a "European EFP Model" based on the "Building Block Approach". Overall, SOC 371 asks for a designated budget line to support related activities by the EU budget.

The EESC Opinion adresses the issue of employee ownership in SMEs as a vehicle for business succession and stresses the importance of the ESOP model in this context.

One of the focusses are SMEs since – citing from SOC 371 – "one of the flagships of the EU 2020 Strategy is to give a strong focus to the delivery of the Small Business Act, in particular with a view to improving the financial situations of SMEs. Here EFP can be one of the mechanisms implemented to support this goal and thus enhance the competitiveness of European SMEs. Independently of the size of the companies, the EFP models must respect company-based solutions and protect employee rights, accounting for the variations in companies and countries.

1.3 This own-initiative opinion therefore intends to:

• re-launch the debate on EFP at the European level and give new impulses for an EU‑wide discussion;
• raise awareness and encourage social partners at European level and in the Member States to take up the issue in more depth;
• identify obstacles for cross-border EFP and suggest possible solutions;
• urge the European institutions to elaborate solutions where appropriate;
• raise questions that need to be further examined."

Dr Jens Lowitzsch, team member of the Inter-University Centre, participated as an expert in the Group I (employers).